Kpone Independent Power Plant in Ghana on course for completion in 2017

Wednesday, 29 March 2017 07:54

The largest private IPP in Ghana set for completion in 2017. (Image source: Cenpower Generation Company)The Kpone Independent Power Plant, the largest private IPP in Ghana, is set for completion within 2017, according to African Infrastructure Investment Managers

On track to becoming a critical base-load component in meeting Ghana’s growing electricity demand, the Kpone Independent Power Plant (KIPP), which is being developed by Cenpower Generation Company, is expected to be commissioned before the end of 2017. Vuyo

Vuyo Ntoi, Investment Director at African Infrastructure Investment Managers (AIIM), one of the project’s core equity investors and a member of Old Mutual Alternative Investments, says that the Cenpower project is a true realisation of Africa investing in Africa.

“In addition to the revolutionary impact that the project will have on Ghana’s electricity industry – set to add around 10 per cent of energy to the generation stock and meet the demand of approximately 1 mn households – an outstanding feature of this particular project is that it is largely an African deal. From the founding shareholders being Ghanaian, to 67 per cent of equity being held by African entities and 83 per cent of senior debt having been issued by African lenders, this project is proof that we are able to structure capital within the continent, and will hopefully provide a template for future project finance IPPs in Africa,” Ntoi said.

The Cenpower KIPP is a Combined Cycle Gas Turbine (CCGT) power plant with a planned capacity of 340MW, designed to work with multiple fuels: gas, crude oil and distillate, although natural gas is envisaged to become the primary fuel, when Ghana’s domestic gas production and transmission network is completed.

Mr Samuel Brew-Butler, the Chairman of Cenpower Generation Company, says that CCGTs represent a very attractive solution to meet Ghana’s urgent need for additional generating capacity because of their high reliability and the ability to operate a range of fossil fuel feedstocks. “A CCGT power plant combines the benefits of proven technology, lower emissions and being relatively predictable in terms of build and cost.”